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The number of homes let out by a company landlord has reached a record high as investors come up with creative ways to get around the Government’s clampdown on buy-to-let.

One in five homes that are let out in the UK are owned by companies, according to new research by Countrywide. This is an increase of 6pc since the first quarter of last year, and is the biggest jump on record.

In London, 27pc of properties let in London are owned by a company landlord, a far higher rate than anywhere else in the country. The next highest level is Yorkshire and the Humber, where companies own 17pc of let properties.

Companies largely control the top the rental market, of properties rented for more than £500 per month, likely due to the high levels of companies in the capital.

More buy-to-let investors are purchasing properties as a limited company to make it more tax efficient, as the Government’s assault on amateur landlords continues. Changes to the income tax relief on mortgage interest payments started in April, and are being phased in over a four year period, until 2020.

Johnny Morris, research director at Countrywide, said: “The incoming tapering of mortgage tax relief is likely driving the increase. Companies are generally taxed more favourably, particularly with recent changes by government to tax relief, so in many cases landlords can make cash savings by operating through a company rather than as an individual.”

The changes mean that for some landlords, the actual tax they pay on their investment could rise twofold or more, the tax rate payable might rise above 100pc, meaning that more than all of their profit is paid in tax, or that it pushes them into loss, making their investment financially unviable and forcing them to increase rents sharply or sell their properties.

It came as Countrywide’s lettings index revealed average rents in Great Britain fell 0.3pc in March compared with the same period last year. This is the second consecutive monthly fall recorded.

In Central London, there was a fall in average rents of 9.5pc in the period since March 2016, but in the Greater London, taking in the outskirts, that call was just 0.4pc. Rents grew at the fastest rate in Scotland, where they went up 4pc.

Mr Morris added: “Rents fell again in March, mostly driven by falls in London. Stock growth continues to outpace demand in the capital, giving tenants more negotiating power, pushing down rents. In much of the rest of the UK rents continued to grow, although at a slower rate.”